Getting A Mortgage On Probation At Work

On this article, I will look at the issues of buying a property while in a probation period at work.

You can obtain a mortgage while in a probation period, however, your choice of lenders will be restricted. The compromise you may have to make is to pay a higher rate initially to obtain the borrowing you require but when your product expires you will have more choice when you come to remortgage.

The wording of the employment contract is important as many lenders will write to your employer for confirmation of your job offer and probation period.

Another factor will be your previous employment history. If you are seen moving from a similar job this will strengthen the application.

"Unusually TSB will lend a future job or pay rise as long as it is within 3 months of starting". This is useful if we need the pay rise to reach the borrowing you require.

Coventry Building Society

If you are currently in a probationary period, you may be considered provided:

you have previously been employed in a permanent position for a minimum of 6 months and is now moving to a similar job and

You are not a first-time buyer.

Natwest

Will not lend under probation period.

We were able to overcome this criteria by the client's employer (Barclays Bank) confirming to Natwest that they were pleased with work performance and were intending to retain our client after the end of the probation period.

Our current 3 favourite lenders are

1. Nationwide

a) You will have to supply at least one month's payslip.

b) Only basic salary will be considered.

However Nationwide are currently very conservative on the amount they will lend compared to TSB and Halifax.

2. Halifax

a) Where you can evidence an offer of permanent employment and the contract states an initial three months probationary period. This income will be used in the affordability assessment.

b) At least one pay slip.

The benefit of the Halifax is that they are one of the last lenders that will advance up to 5 times sole or joint income subject to credit score and underwriting

3. TSB

This lender has one of the most relaxed criteria for probation.

a) They require no minimum term of employment.

b) If you can evidence you will be starting a new job, receiving a pay rise or undertaking a new role with their current employer within the next 3 months then we can lend against the future income figure.

TSB will seek an employer’s reference and we may also ask for a copy of the contract or pay review letter.

TSB is looking to lend in the region of 4.5 times sole or 4.5 times joint income subject to credit score and underwriting.

As lending criteria changes on a regular basis, please contact us to discuss your individual circumstances